On Monday, Amazon.com announced the launch of 'Amazon Supply Chain Services,' enabling businesses to utilize its extensive logistics network for storing and shipping goods. This strategic move positions Amazon to challenge established logistics giants UPS and FedEx, potentially reshaping the U.S. logistics landscape. With a fleet of over 100 cargo planes and a comprehensive network of warehouses, Amazon aims to enhance delivery speed and pricing competition. Following the announcement, shares of UPS and FedEx fell by more than 9%, while Amazon's stock rose nearly 1%. The new service is expected to attract various industries, including retail, healthcare, and manufacturing, offering benefits such as two-to-five-day delivery timelines and advanced inventory forecasting. Analysts at Evercore ISI noted that this expansion is a significant competitive threat to traditional parcel firms and could lead to market instability, particularly for contract logistics firms like DHL Supply Chain and Maersk Logistics. Amazon's approach mirrors its success with Amazon Web Services, transforming logistics into a profitable infrastructure product.